Data centres and Decarbonisation

Rapid digitalisation, in virtually every sector of Europe’s economy, is driving fast growth in the data centre industry. Simultaneously, Europe’s energy system is being transformed through the accelerated adoption of variable renewables, prompted by steep declines in the cost of wind and solar power plants, together with government targets to decarbonise electricity generation.

The variability associated with distributed renewable generation increases the requirement from network operators for new and intelligent grid stabilisation services. Data centres can help meet this need by supporting the development of a more flexible and connected energy system with their computing power and their physical infrastructure, in particular the vast amounts of battery energy storage attached to their existing back-up power systems.

This new study, authored by BloombergNEF, in partnership with Eaton and Statkraft, identifies and quantifies how data centres can play a meaningful role in the power sector’s transition to a low-carbon future. It explores the capacity of data centres across five of Europe’s largest markets (UK, Ireland, Germany, Netherlands, and Norway) and considers how they can be part of a more open, interactive, and flexible power system. It examines the sustainability benefits that can be created by changing the status quo.